How to Change Your IRS Payment Plan Online or by Phone

You can change your IRS payment plan three ways: through your IRS online account for a $10 fee, by phone at 800-829-1040, or by mail, with phone and mail changes costing $89. The most common modifications are adjusting the monthly payment amount, moving the due date, switching to automatic bank withdrawals, or updating the bank account tied to an existing direct debit. Changes to an existing direct debit agreement carry no fee.¹

What You Can Actually Change

An active installment agreement can be modified without canceling it. You can raise or lower the monthly payment, shift the due date to a different day of the month, convert manual payments into a Direct Debit Installment Agreement, or update the routing and account number on an existing direct debit. Agreements that went into default can also be reinstated through the same channels.¹

One rule limits how low your payment can drop. The IRS generally has ten years from the date the tax was assessed to collect what you owe, known as the Collection Statute Expiration Date.² Any new monthly amount has to be high enough to pay the balance off before that date. Propose a payment that would leave money owed after the ten-year mark and the IRS will likely reject it. Submitting a modification request also suspends the collection clock while the request is pending, which pushes the deadline out slightly.³

Changing Your Plan Online

The Online Payment Agreement tool at IRS.gov is the fastest and cheapest route. After signing into your online account, you can revise the plan type, payment date, payment amount, and direct debit bank information in one session.⁴ The tool is available if your total assessed balance of tax, penalties, and interest is $50,000 or less. Above that, you have to work with the IRS by phone or mail.

If the payment you propose is below the minimum the IRS expects for your balance, the tool will send you to complete a financial statement such as Form 433-F and submit it separately.¹ The IRS will then review your income, expenses, and assets before agreeing to a lower amount.

Changing Your Plan by Phone or Mail

Call the IRS at 800-829-1040 to modify or terminate an agreement over the phone.⁵ For a written request, send an explanation of the changes you want to the IRS service center handling your account. If you’re setting up or changing direct debit, Form 433-D authorizes the automatic withdrawals and asks for your routing and account numbers.⁶

Form 9465 is not the right form here. It’s for requesting a brand-new installment agreement, and its instructions specifically direct taxpayers who want to change an existing agreement to use the online tool or call.⁵

The IRS generally responds within 30 days, though requests tied to returns filed after March 31 can take longer.⁷ Keep making your current payments until written confirmation arrives. The IRS uses Letter 2273C to confirm accepted or revised terms, including the new payment amount and schedule.⁸

What It Costs

The fee depends on the channel:

Online through the OPA tool: $10
Phone, mail, or in person: $89
Changes to an existing Direct Debit agreement: $0

Low-income taxpayers, meaning those with income at or below 250% of the federal poverty guidelines, pay reduced fees. Online modifications still cost $10 and may be reimbursed; phone or mail modifications drop to $43 and may also be reimbursed.¹ The fee is waived entirely for low-income taxpayers who agree to pay by direct debit.⁹

The modification fee is normally added to your outstanding balance rather than collected upfront, so you don’t have to pay it out of pocket at the time of the change.⁷

Interest and Penalties Keep Running

Modifying the agreement doesn’t freeze what you owe. Interest continues to accrue on the unpaid balance at the IRS underpayment rate, which is 7% per year as of the first quarter of 2026, compounded daily and adjusted quarterly.¹⁰

The failure-to-pay penalty gets a break while an installment agreement is in place. The standard rate is 0.5% of the unpaid tax per month. If your return was filed on time and you have an approved installment agreement, that rate drops to 0.25% per month. The penalty caps at 25% of the unpaid tax.¹¹ Both interest and penalty run against whatever balance remains, so paying more than the minimum when you can shortens the total cost.

Staying in Good Standing After You Modify

Paying on time is only part of the deal. For the life of the agreement, you also have to file every required return on time and pay every new tax liability as it comes due, including estimated taxes if you’re self-employed or have income without withholding. Falling behind on either can put the agreement in default.¹²

Federal law lets the IRS alter, modify, or terminate the agreement for any of these:

A missed installment payment
A new unpaid tax liability
An unfiled required return
Failure to provide requested financial information
A significant change in your financial condition

Before acting on any of those, the IRS has to send written notice at least 30 days in advance explaining what it plans to do and why. The one exception is when the IRS believes collection is in jeopardy, in which case it can act immediately.¹³

If the IRS Denies Your Change or Terminates the Agreement

A termination arrives as a CP523 notice, which states the intent to end the agreement and begin collection, including possible wage levies and bank account seizures. You have until the termination date on the notice to fix the problem, and the IRS advises contacting them within 30 days of the notice date.¹⁴

Reinstatement is possible once the underlying issue is resolved, whether that means catching up on missed payments, filing overdue returns, or paying a new balance. The reinstatement fee is $89, or $43 for low-income taxpayers, unless you use the online tool, where the fee is $10.¹ Low-income taxpayers who agree to direct debit have the fee waived; those who can’t pay by direct debit have the reduced fee reimbursed after completing all payments.⁶

During the 30 days after termination, and while an appeal is pending, the IRS is generally prohibited from levying wages or seizing bank accounts.¹ That gives you a window to correct the issue or file an appeal.

To appeal a denied modification or a termination, use Form 9423, Collection Appeal Request, check the box for “Modification of Installment Agreement,” and explain why you disagree. The form goes to the IRS office that took the action, not directly to Appeals, and must be submitted within 30 days. A managerial conference beforehand isn’t required but is recommended by the IRS. Anyone appealing on your behalf needs a Form 2848 Power of Attorney on file.¹⁵

While the appeal is pending, the ten-year collection clock is suspended and enforced collection is on hold.¹ Keep making payments during that time if the agreement is still active. Stopping payments while waiting for a decision would create a separate default.

1
Internal Revenue Service. Payment Plans; Installment Agreements
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Internal Revenue Service. Time IRS Can Collect Tax
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Taxpayer Advocate Service. Collection Statute Expiration Date (CSED)
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Internal Revenue Service. IRS Payment Plan Options – Fast, Easy and Secure
5
Internal Revenue Service. Instructions for Form 9465 (Rev. July 2024)
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Internal Revenue Service. Form 433-D Installment Agreement
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Internal Revenue Service. Instructions for Form 9465 (07/2024)
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Internal Revenue Service. IRM 5.19.1 Balance Due
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eCFR. 26 CFR 300.2 – Restructuring or Reinstatement of Installment Agreement Fee
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Internal Revenue Service. Interest Rates Remain the Same for the First Quarter of 2026
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Internal Revenue Service. Topic No. 653, IRS Notices and Bills, Penalties and Interest Charges
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Internal Revenue Service. IRM 5.14.1 Securing Installment Agreements
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Office of the Law Revision Counsel. 26 U.S. Code 6159 – Agreements for Payment of Tax Liability in Installments
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Internal Revenue Service. Understanding Your CP523 Notice
15
Internal Revenue Service. Collection Appeal Request – Form 9423